MTC sell-off back on the agenda

It's on, it's off, it's on again. The roller-coaster story of the Kuwait government's proposed sell off of MTC took a new twist yesterday as a parliamentary debate appeared to conclude the sale could go ahead.

It's on, it's off, it's on again. The roller-coaster story of the Kuwait government's proposed sell off of MTC took a new twist yesterday as a parliamentary debate appeared to conclude the sale could go ahead.

Details of a revised sell-off plan were not released from parliament, and it is still unclear when a portion of the state's 49.2% holding in MTC will take place or what size that portion will be. Reuters reported that the government expects to raise $500 million from the sale.

Some members of the elected parliament had previously objected to the sell-off because they felt it would benefit the elite at the expense of the general population.

Demand for MTC shares is strong among the 825,000 Kuwait citizens who would be eligible to take part in the floatation. The shares are seen as good value because when the Kuwait stock exchange opens itself up to foreign investors, there is expected to be strong interational demand for MTC, which could lift its stock price.